Posts Tagged ‘investor’

Why not just invest in index funds?

Like the S&P 500, since it goes up and down with the market. Is the strategy of an "index and a few" (few refering to stocks) a good way to invest? How should a moderate-higher risk investor invest? Also, since most mutual funds underperform, why should you invest in some(or not)?


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What factors do investors consider when looking at an investment opportunity?

I’m sure they look at the return on thier investment and the possible profits. How heavy do they weigh the "person" asking for the investment?

Would it be challenging to find an investor to open a second hand store? Does the persons credit matter?
I’m talking about my bad credit.


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Why does the value of a mutual fund go down by the equal amount of the dividend paid?

While I was happy to get a 25 cent dividend, I then noticed that the NAV of my mutual fund went down by 25 cents. So, in the end, are dividends useless to the investor? Please tell me what the story with this is. Thanks in advance.


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Where is the best place to complain about an undisclosed fee with a mutual fund company?

I thought I was opening a mutual fund account with a large mutual fund company. I already have a Traditional IRA mutual account with them. When I opened the ROTH IRA account online I didn’t realize it was a brokerage account. I’m a saver not an investor. I have 20 years with this company, however they won’t waive the fee for this account. Worst of all it was hidden in the pull down electronic agreement so I didn’t see it. They are playing hard nose and won’t budge, not even for an old client.


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How can an investor sell stock after purchasing a put option when the value of the stock dropped?

If an investor buys a put option for the right to sell shares at a share, and the market price of the stock drops to per share, how is it possible the investor is able to exercise their right to sell the shares at per share? Who would be interested in purchasing stock at per share if they can purchase it for per share?


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What services does an investment company provide to an investor?

If you started an investment company, what kind of services would you provide for an investor?


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Do a hedge and mutual funds have to pay income and capital gains taxes on its investments?

If the fund makes a trade does it have to pay the taxes or does the investor pay taxes after they make a withdrawl from the fund? Or is it both? Same with Mutual Funds? If these funds don’t have to pay taxes on their trades, this seems like a HUGE advantage compared to the average investor.


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If mortgage bonds are secured corporate bonds then how did the subprime bubble happen?

I am trying to understand secure bonds and I know mortgage bonds are secured bonds,if that is the case,even if they default ,the investor should get the prinicipal back.Can someone give an explanation of this works.


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Penny Stocks: The Hype Vs Reality

The definition of penny stocks, also known as micro-cap stocks, varies. A stock is termed as a penny stock based upon its market capitalization and share price.

According to the US Securities and Exchange Commission (SEC), a stock is termed as penny stock if its share price is below $5. However, many in the investor community believe that a penny stock is one with the share price of $1 or less. As junk bonds are compared to investment grade bonds in fixed income market, penny stocks are compared with blue chip stocks in stock markets.

anglo irish bank stocksTrading in penny stocks are far more riskier and speculative than trading in blue-chip or other mid-cap or large-cap stocks. Several investors believe that investing in penny stocks is like gambling, that one has to be prepared for losing money. Moreover trading penny stocks can be more expensive. Penny stocks are usually traded in the Over-the-Counter exchange or on the pink sheets.

If you intend to invest in penny stocks you should know the differences between penny stocks and other stocks, such as blue chips and mid-caps. While the performance of mid-cap and large-cap stocks is driven primarily by fundamentals, several analysts believe that the performance of penny stocks is driven primarily by investor speculations. If you analyze the fundamentals of 100 penny stocks, perhaps only two or three would be generating superior returns.

Despite the issues associated with penny stocks, several investors intend to invest in penny stocks, since they believe many of today’s blue-chip stocks, such as, Microsoft (Nasdaq: MSFT) and Wal Mart (NYSE: WMT) were once penny stocks. However, the share prices of these companies were almost never trading for pennies, however it appears that way when one looks at the price adjusted for stock splits. Many investors ignore this fact.

Since many penny stocks are traded on the pink sheets and are not scrutinized by the SEC, you will find it more difficult to find credible information about them.

Penny stocks often lack liquidity, which means investors would find it difficult to buy or sell. A lack of liquidity often helps fraudulent investors to manipulate the share prices. The SEC itself in Schedule 15G states ‘Investors in penny stock should be prepared for the possibility that they may lose their whole investment’.

A penny stock traded on the over-the-counter exchange has a higher chance of being delisted for lack of compliance. If the particular company is unable to list its stock on another exchange or become re-instated, you may lose 100% of your investment. You should consider this seriously, if you intend to take long positions in a penny stock.

Several new investors are attracted to penny stocks, given their low price and potential for substantial gains. There have been instances where penny stocks rose more than 1000% in a few days in the past, but this is extremely rare and often the price is not sustained. There are historical evidences that most penny stocks lose their entire value. If you are a new investor, you need to be aware of the risks involved.

If you still want to invest in penny stocks, do the relevant research into the company’s fundamentals and ignore the pre-conceived theories about the successes of the penny stocks in the past.

Penny Stocks Investing: Christian stock
Penny Stocks Investing: Christian stock investing: How to be … Christian stock investing: How to be Biblically responsible. Have you ever wondered how to pick investments that line up with your beliefs?

Penny Stock  stock quotes
Penny Stocks – ABK ACTC ADVNB APPY C CHTR CNB CTIC FED FIG FITB GNTA IRE MCET RBS SAY SOLM SPSN SSCC STEM STSA TSFG UYG Stocks – ABK AMD AMR CDE CPSL CPST ESLR ETFC F FMNTQ FRPT

Penny Stocks Market
Penny stocks are ordinarily offered up by a concern that has been established for less than three years and has not greater than 5 million dollars in solid assets, or a business that has at the very least three years.

Penny Stocks Investing
The Business Desk (registration)Advice for SMEs on raising finance on PLUS stock marketThe Business Desk (registration), UK – 15 hours agoBy Anastasia Weiner – Business Correspondent A SEMINAR advising business leaders.


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What Stocks are Good Investments?

How to Research Individual

Stocks There are good research resources available to the individual investor, many at your local library. In addition, if you hire a full-service broker, you can indirectly avail yourself of his or her research department.

In our opinion, the two most basic, cost-effective, and objective research tools are the Value Line Investment Survey and Standard & Poor’s Stock Guides. Both may be available at your local library.

list of preferred stocks their yieldsThe Invaluable Value Line

The basic Value Line service covers approximately 1,700 stocks. For each stock, Value Line provides two rankings: timeliness and safety. Of the two, pay particular attention to safety. Stocks are ranked on a 1-5 basis, with 1 being the safest. Don’t consider any stock with less than a 2 rating.

Value Line also provides scores for four other key indicators:

Financial strength
Stock price stability
Stock price growth persistence
Earnings predictability

In addition to the rankings and key indicators cited here, Value Line includes a great deal of relevant statistical and narrative information. Value Line reports are updated regularly. The individual company write-ups will take some getting used to, but after a while, you will find that you can easily determine a company’s earnings growth rate and the consistency of that growth rate.

Use Value Line to help you select at least 25 stocks that:

Are safe or very safe (that means a ranking of 1 or 2)
Are growing at an above-average rate
Are growing consistently and steadily

What does "above average" mean? We suggest you look for a minimum of 8 percent and, ideally, 10 percent growth. And keep an eye on consistency. For a 10 percent grower, 10 percent a year is perfect but rarely achieved. A range of 8-12 percent is consistent. From 6-14 percent is acceptable. But if the company’s earnings swing between 0 percent and 30 percent, for example, it’s too volatile to be in your portfolio unless you know exactly what you’re doing.

S&P Stock Guides

Standard & Poor’s Stock Guides (Bond Guides are also available) are an excellent research tool. The guides come out monthly and cover over 6,000 stocks, 700 mutual funds, 600 closed-end funds, and 800 preferred stock issues.

Newspapers

Finally, two newspapers, Investors Business Daily and The Wall Street Journal, do an excellent job of tracking the stock market and individual stocks. Either may be available at your local library.

If you simply must follow the market during the day, both CNBC and Bloomberg Information TV do a good job of keeping you current.

For a nightly wrap-up, check out PBS’s Nightly Business Report.

How I Made $6 Million in the Stock Market
amazing report from a trader who made $6 Million trading stocks. By Mark Crisp

Own these Stocks CSCO,EBAY,FCX,GOOG,IBM,INTEL,RTP
Stockpickr.com founder James Altucher shares his picks that will make 2009 a fiscal year to remember.

Stocks jump on reports of plan for bad bank assets
Financial stocks surged on the notion that the government could take soured debt like defaulting mortgages off the hands of banks and place them in a so-called bad bank to hold toxic assets.

U.S. stocks stay under water after new home sales
NEW YORK (MarketWatch) — US stocks remained entrenched in losses early Thursday after data showing the sale of new homes fell to the lowest monthly level on record.

Stocks open lower on fresh worries about economy
Wall Street has turned cautious as weak profit reports and record unemployment claims offer the latest evidence of the economy’s struggles.

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